Unscheduled emergency shutdown at Haldia Petrochemicals

(Plastemart) -- A week long unplanned emergency shutdown has been announced by Haldia Petrochemicals Ltd (HPL). The aim is to fix a problem in the naphtha cracker complex. This is HPL's second closure after the company increased its capacity under ⌠Project Supermax in August.

MRC


Shares in Nan Ya Plastics extend falls after Chiayi plant fire

SINGAPORE (ICIS) -- Ya Plastics, a part of petrochemical giant Formosa group of companies, took a heavy beating in the equities market for the second day on Tuesday following the fire on 3 October at its synthetic paper plant in Taiwan's Chiayi county.

The latest fire, which occurred while the two successive fires in July at Formosa's Mailiao petrochemical facility were still fresh in investors' minds, has raised questions about the group's safety standards, said Jack Shieh, executive manager at the Petrochemical Industry Association of Taiwan (PIAT).

While Nan Ya admitted it would not be able to operate the damaged 48,000 tonne/year plant for at least a year, its impact on earnings was expected to be minimal, according to an analyst at an international brokerage firm. The company itself pegged its monthly income loss at New Taiwan dollars (NT$) 150m.

The restart of some plants at Mailiao that were shut during the 26 July fire risked being delayed further after the latest fire, according to Shieh.

MRC


Dow sells stake in PC venture to LG Chem

(prw) -- South Korean plastics and chemicals giant LG Chem has bought out Dow Chemical's 50% stake in a polycarbonate-making joint venture for an undisclosed price.

Dow's half of the LG Dow Polycarbonate joint venture went over to Seoul-based LG on 1 October, according to a Bloomberg News report. The joint venture operates a pair of plants in Yeosu, South Korea, with combined annual capacity of almost 375 million pounds of PC, according to the report.

The joint venture rang up sales of $325m in 2009. It was founded in 1999 and began production in 2001, making PC under Dow's Calibre trade name.

Dow's share of the joint venture was set to transfer to private equity firm Bain Capital, which bought Dow's Styron unit ≈ including PC ≈ for $1.6bn earlier this year.

Dow's LG Dow PC stake ⌠was one of the real strong assets of the [Styron] deal because of growth prospects in Asia for automotive and electronic PC usage according to industry analyst Roger Young of Robert Eller Associates in Akron, Ohio. The sale leaves Styron without an Asian manufacturing base, Young added. Styron also has PC production in Freeport, Texas, and Stade, Germany.

MRC


Demand outlook optimistic for Europe olefins

BUDAPEST (ICIS)--There will be increased demand for European olefins next year and crackers will be running at full capacity, market sources said on Monday. Speaking on the sidelines of the 44th annual European Petrochemical Association (EPCA) meeting, ethylene (C2) and propylene (C3) producers and consumers remarked that the mood was upbeat and that the expectation was for increased demand through 2011. ⌠We have had first [demand] nominations for 2011 and they are looking good, a major producer said. He added that compared with 2010, next year's nominations were showing a marked increase.

This year so far has been widely described as better than expected, with European ethylene and propylene derivative markets supported by robust exports and the failure of new Middle East capacity to make as much of an impact as had been feared.

MRC


Amcor buys Italian manufacturer of cast PP film

(prw) -- Global packaging manufacturer Amcor has bought one of its supplier companies, B-Pack Due, a cast polypropylene film manufacturer based in Campiglia Marittima, Italy. B-Pack is part of the ┬130m Colines Holdings Group.

The move heralds expansion by Amcor into the cast PP market; Amcor's film business is almost exclusively based on blown production. The deal also includes Amcor signing an exclusive supply agreement with Colines, which manufactures film production equipment, covering large CPP lines.

⌠The exclusivity agreement, which covers large capacity lines, provides Amcor with protected access to a world-leading CPP manufacturing technology that will serve as a platform for anticipated further expansion in CPP films, Amcor said in a statement.

A spokesman for Colines said the detailed terms of the supply agreement with Amcor would not be disclosed. However, he made clear that it was a reciprocal arrangement - Amcor would only buy Colines large cast lines and it in return will not supply its large CPP systems to other film producers.

Melbourne-based Amcor paid ┬43m for B-Pack Due, which had sales in 2009 of ┬43m.

Colines Holding's B-Pack barrier film business and its IP structured packaging operations are not included in the Amcor sale. The B-Pack facility at Nibbia in Italy houses two 2-meter-wide cast lines (five- and seven-layer) and three blown lines (two five-layer and one seven-layer).

The B-Pack barrier film operation has a production capacity of around 15,000 metric tons per year and specializes in medical and food films. Together with the IP structured packaging business, it represents annual sales or around ┬50m.

MRC